Lapse Supported Life Insurance Policies
Definition of "Lapse supported life insurance policies"
Policies that have their future cash values closely correlated with a high lapse ratio of the insurance company's book of business. In theory, gains resulting from these lapses will result in a greater surplus account, thereby building the future cash values of these policies. In essence, the policy is specifically designed so that if it is surrendered, its surrender value would be less than its asset share value.
Popular Insurance Terms
Type of trust used to remove assets from a surviving spouse's estate, thereby excluding such assets from federal estate tax upon the death of the surviving spouse. This type of trust allows ...
Property owned by two or more parties in such a way that at the death of one, the survivors retain complete ownership of the property. ...
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Coverage for the perils of burglary, theft, and robbery. ...
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Endorsement to the special multiperil insurance (smp) policy that provides all risks damage coverage for real property. This special form provides only minimum cover, leaving the option for ...
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